The present invention is directed to a gaming terminal and a method of playing a wagering game having a parlay feature. Using the parlay feature, a player can place a wager that is greater than a maximum wager allowed at the gaming terminal. In addition, the parlay feature allows a player to wager a portion of the player's prior winnings, instead of the entire amount. Furthermore, the parlay feature can be saved and used in a later gaming session at the same or different gaming terminal.